Berhad has the following financial statement as at 31 December 2019: Jiki Berhad Statement of Financial Position as at 31 December 2019 Assets (RM) Plant (Net) 4,000,000 Research and Development 16,000,000 Cash 5,400,000 Trade Receivable (Net) 5,400,000 Interest Receivable 800,000 Inventory 2,000,000 Total Assets 33,600,000 Liabilities and Shareholders’ Equity Trade Payable 5,920,000 Loan Payable 9,300,000 Provision for warranties 300,000 Deferred tax liability 4,200,000 Share Capital 10,380,000 Retained Earnings 3,500,000 Total Liabilities and Shareholders’ Equity 33,600,000 Additional Information: a) Tax laws allow only specific bad debts. The carrying amount in the trade receivable account is after the provision of 10% provision of doubtful debts. b) Interest receivable is recorded on accrued basis however is taxable only upon receipt. c) The carrying amount of the plant is after providing accumulated depreciation of RM 6 million. As at 31 December 2019, total capital allowance given to the plant is RM 7.2 million. The plant was acquired on 1 January 2017 and the expected useful life is 5 years d) Tax laws allow the research and development costs to be written off immediately upon incurred. e) Tax laws allow the warranty costs to be claimed upon incurred. f) Tax rate has been reduced from 35% (last year) to 30% (this year). g) The balance in the deferred tax liability account is the carried forward balance from the last accounting period. Required: In accordance with MFRS 112: Income Taxes, calculate the amount of deferred tax and tax expenses charged in the financial statement of Jiki Berhad for the year 2019.
Berhad has the following financial statement as at 31 December 2019:
Jiki Berhad
Statement of Financial Position as at 31 December 2019
Assets (RM)
Plant (Net) 4,000,000
Research and Development 16,000,000
Cash 5,400,000
Trade Receivable (Net) 5,400,000
Interest Receivable 800,000
Inventory 2,000,000
Total Assets 33,600,000
Liabilities and Shareholders’ Equity
Trade Payable 5,920,000
Loan Payable 9,300,000
Provision for warranties 300,000
Share Capital 10,380,000
Total Liabilities and Shareholders’ Equity 33,600,000
Additional Information:
a) Tax laws allow only specific
b) Interest receivable is recorded on accrued basis however is taxable only upon receipt.
c) The carrying amount of the plant is after providing
d) Tax laws allow the research and development costs to be written off immediately upon incurred.
e) Tax laws allow the warranty costs to be claimed upon incurred.
f) Tax rate has been reduced from 35% (last year) to 30% (this year).
g) The balance in the deferred tax liability account is the carried forward balance from the last accounting period.
Required:
In accordance with MFRS 112: Income Taxes, calculate the amount of deferred tax and tax expenses charged in the financial statement of Jiki Berhad for the year 2019.
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